Saylor URL: http://www.saylor.org/books Saylor.org
carry wholesalers are an example. Small retailers often buy from cash-and-carry wholesalers to keep
their prices as low as big retailers that get large discounts because of the huge volumes of goods they buy.
Drop shippers are another type of limited-service wholesaler. Although drop shippers take title to the
goods, they don’t actually take possession of them or handle them, oftentimes because they deal with
goods that are large or bulky. Instead, they earn a commission by finding sellers and passing their orders
along to producers, who then ship them directly to the sellers. Mail-order wholesalers sell their products
using catalogs instead of sales forces and then ship the products to buyers. Truck jobbers (or truck
wholesalers) actually store products, which are often highly perishable (e.g., fresh fish), on their trucks.
The trucks make the rounds to customers, who inspect and select the products they want straight off the
trucks.
Rack jobbers sell specialty products, such as books, hosiery, and magazines that they display on their own
racks in stores. Rack jobbers retain the title to the goods while the merchandise is in the stores for sale.
Periodically, they take count of what’s been sold off their racks and then bill the stores for those items.
Brokers
Brokers, or agents, don’t purchase the products they sell (take title to them). Their role is limited to
negotiating sales contracts for producers. Clothing, furniture, food, and commodities such as lumber and
steel are often sold by brokers. They are generally paid a commission for what they sell and are assigned
to different geographical territories by the producers with whom they work. Because they have excellent
industry contacts, brokers and agents are a “go-to” resource for both consumers and companies trying to
buy and sell products.
Manufacturers’ Sales Offices or Branches